IDEAS home Printed from https://ideas.repec.org/a/ids/intjaf/v5y2015i2p133-147.html
   My bibliography  Save this article

Family firms and the market's sensitivity to accruals quality

Author

Listed:
  • Guy D. Fernando
  • Richard A. Schneible Jr .
  • SangHyun Suh

Abstract

Prior research shows that family firms have better financial reporting quality compared to non-family firms. However, prior research also shows that the financial markets discount the value of family firm choices. In this paper, we show that even though family firms, on average, have better realised reporting quality as measured by accruals based measures, the market's reaction to poor earnings quality is more severe for family firms. Our findings will be important to family firm managers as they grapple with how best to communicate with financial market participants.

Suggested Citation

  • Guy D. Fernando & Richard A. Schneible Jr . & SangHyun Suh, 2015. "Family firms and the market's sensitivity to accruals quality," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 5(2), pages 133-147.
    • Handle: RePEc:ids:intjaf:v:5:y:2015:i:2:p:133-147
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=71837
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:intjaf:v:5:y:2015:i:2:p:133-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=231 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.